Hastmead Diamante Community ownership model
The Hastmead Diamante Community ownership model, also referred to as the Community ownership model is an informal term used to describe the structure of governance for a sports club in Osarius, wherein the local community holds the controlling stake, meaning no individual or company is allowed to own more than forty-nine percent of all available shares. The model was designed to allow a local community to benefit from the successes of a sports club without exposing the average citizen to large amounts of risk, which in turn was thought to encourage steady growth of the club, and by extension, the local economy.
The term originated when Umberto Gabelli helped to finance the professionalisation of Hastmead Calcio Diamanti (now known as Hastmead Diamante) in 2137, establishing a charter to define how the club would be run in future. A statue of Gabelli stands outside Black Patch Park in commemoration of his contributions to the club.
Background
In 2118, Umberto Gabelli, CEO of Gabelli Minatori, approved the formation of a new works team for the company, combining several smaller works teams into a single entity that was capable of competing on a national level. To address fears that the company might use the successes of the team to its own benefit, neglecting the players – who were also still workers within the company – Gabelli called in legal counsel and drafted a legal document which guaranteed various benefits to employees directly involved with the day to day running of the team. This would later form the foundation of the community ownership constitution.
Among the benefits guaranteed to employees were reduced hours (with the caveat that the "free time" would be spent managing the club or training for matches), complete autonomy over management decisions for the club (though financial decisions using company money would still require approval from the board) and improved health insurance.
In 2137, the Osarian Football Association announced the formation of a professional football league, and Hastmead Calcio Diamanti were among the first group of teams to go professional and play in the King's League. To facilitate this change, while maintaining the guarantees made to employees, Umberto Gabelli oversaw the drafting of a constitution, financed the purchase of almost twenty-five percent of available shares through Gabelli Minatori to be awarded to employees, and personally bought a large number of shares in the IPO, of which the vast majority were also awarded to employees.
Features
Residency criteria
Most important to the Community ownership model is that it restricts ownership to individuals and companies located in the same district as the sports club. To be considered eligible, an individual must meet the following criteria:
- The individual either owns a residential property in the local district that is not being fully rented to another individual (or individuals), or is registered to vote at a property located in the local district
- At least 50% of the individual's residency tax is paid to the local district council
- The individual possesses an Osarian (or "Foreign") passport, or has been a resident in Osarius for at least 1,800 consecutive days, or has been a resident in Osarius for at least 3,700 days in total
To be considered eligible, a company must meet the following criteria:
- At least one of the company's registered addresses is located in the local district
- At least 50% of the company's corporate tax is paid to the local district council
In practice, this means very few large companies are eligible to directly own shares in the club. Some major businesses have attempted to circumvent this restriction in the past by awarding bonuses to employees who qualify as individuals and then enacting agreements in which the employee votes in the interest of the company. These were outlawed in the early 2200s at the behest of Benedict Watson, who feared that corporate influence on the club could compromise its values, as well as place undue pressure on fans who were employed by larger companies.
Smaller companies have purchased shares in the club as a form of investment, with the club often awarding partnerships in return. For example, when Enzo Gabbiani opened his second "EG1" restaurant in Carbonia – creatively named "EG2" – and converted to a private limited company to manage the two as a single entity ("EG Restaurants, Ltd.") to mitigate risk, he also purchased shares in Hastmead Diamante in the company name. This investment, and the exposure it brought, increased interest in Gabbiani's restaurants as well as coinciding with an uptick in share price for Diamante. The two then formed a symbiotic relationship, in which Diamante's on-site catering at Black Patch Park was handled by Gabbiani's company. The stadium-based restaurant, "EG Diamante", is still in operation.
Member rights
The Hastmead Diamante Community ownership model constitution states the following as inalienable rights afforded to "community members" (i.e. shareholders):
- All members are eligible to vote in community elections (i.e. elections to the board, changes to the board, or changes to the constitution)
- Each share owned entitles the owner to a single vote in any community election
- All members are eligible for nomination to the board, and will be awarded the role if victorious in a community election
- All members are given first refusal on a season ticket (at any level) for games at Black Patch Park
- If the club's profit margin exceeds five percent, all members are due a proportional dividend for the financial year from the total fund allocated by the board